UK Insurance Broker Survey: Technology, Service, and Drivers of Choice

by Catherine Stagg-Macey, July 22, 2010
Industry Trends
EMEA

Abstract

Brokers are looking for more speed and efficiency gains where possible. Over 70% of survey respondents rated speed of policy issuance and underwriting decisions as key criteria in choosing to work with an insurer.

Based on the success of the North American report looking at brokers and technology, Celent has launched a UK version. Would UK brokers echo the concerns of their North American colleagues in terms of the drivers of insurer choice? In a new report, UK Insurance Broker Survey: Technology, Service, and Drivers of Choice, Celent explores the technology and choices brokers make in choosing their insurer partners.

This report discusses in detail the results from a survey of 264 UK brokers. The typical profile of the respondent is a veteran insurance professional in a small to medium-size broker company, generating a significant book of business primarily in personal and small commercial lines from multiple insurers.

Technology is a critical differentiator only to the extent that tools impact speed and efficiency. There are enhancements to be made in the new business process, such as live chat and broader integration with insurer and broker tools. In addition to this focus, Celent proposes that the time has come to invest beyond the new business process and to look for efficiency gains through automation in the areas of claims and renewals.

“Time and time again, the data points to the importance placed on speed by brokers,” says Catherine Stagg-Macey, Senior Analyst with Celent’s Insurance Group and author of the report. “They greatly value insurers’ recent investments in portals that focused on quicker decision time and better customer service.”

This report examines the use of technology across the business process by brokers, looking at the role of the broker management system and the insurer broker website. It also analyses the reasons for the nominations of “best insurer” and concludes by making recommendations to insurers on investment prioritisation.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

5

 

Methodology

6

 

Limitations

6

Respondents

7

 

Respondent Profile

7

 

Company Size and Business Concentration

9

Business Processes and the Use of Technology

12

 

How Work Is Done

13

 

Technology Tools

14

Processing New Business

17

 

Tools Used

17

The Value of Insurer Websites

22

 

Frequency of Use

22

Straight-Through Processing

27

 

Paperless Processing

28

Drivers Behind the Choice of an Insurer

30

 

Overall Satisfaction

30

 

Insurer Choice Drivers

31

 

Becoming a Favoured Insurer

33

 

Favorite Insurer Reasons

34

Opportunities for the Future

36

 

Technology Payoff

36

 

Opportunities

37

Final Thoughts

39

Leveraging Celent’s Expertise

41

 

Support for Financial Institutions

41

 

Support for Vendors

41

Related Celent Research

42

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